El Paso Energy Builds Falcon Nest Platform

El Paso Energy Partners, L.P. has entered into an agreement with Pioneer Natural Resources Company and Mariner Energy, Inc. to construct, install, own, and operate a new production hub platform and associated facilities for Pioneer's and Mariner's Falcon field discovery located in East Breaks blocks 579, 580, and 623 in the Gulf of Mexico. Pioneer will serve as operator of Falcon Field. EPN anticipates that the new platform, dubbed Falcon Nest, will be completed and online in the first quarter of 2003. EPN will construct and own approximately 20 miles of 18-inch pipeline connecting the platform to an offshore natural gas gathering system.

Falcon Nest will be installed in 390 feet of water at Mustang Island block 103 and will have an initial design capacity of 300 million cubic feet of natural gas per day. In addition to the Falcon field blocks, Pioneer and Mariner are dedicating an additional nine blocks in the area for Falcon Nest processing and gathering. "We are extremely pleased to be working with Pioneer and Mariner to bring their new discovery into production," said Robert G. Phillips, chief executive officer of El Paso Energy Partners. "The addition of the Falcon Nest platform to our existing portfolio of shelf-based and Deepwater Trend platforms represents another significant step in our plans to be the leader in the development of pipeline and platform infrastructure in the Gulf of Mexico. Falcon Nest will be strategically located in a new development area of the western Gulf and will be built with the expansion capability to attract the development of additional natural gas discoveries from this new production area."